20 Key Numbers You Need to Know to Understand More About Starhill Global Real Estate Investment Trust

Starhill Global Real Estate Investment Trust (SGX: P40U) is a retail real estate investment trust (REIT) that owns properties in Singapore, Australia, Malaysia, China, and Japan.

On Monday, the REIT released its annual report for the full year ended 30 June 2017 (FY2016/17). Here are some statistics that investors might want to know about from the report.

Where does the REIT make money from?

The retail REIT’s portfolio comprises of 11 assets located in six Asia-Pacific cities – Singapore, Adelaide, Perth, Kuala Lumpur, Chengdu and Tokyo.

In Singapore, Starhill Global REIT owns interests in Wisma Atria and Ngee Ann City. Over in Australia, it owns Myer Centre Adelaide, David Jones Building and Plaza Arcade. In Malaysia, Starhill Gallery and Lot 10 are part of its portfolio. In China, it owns a retail property in Chengdu and over in Japan, it has three properties.

Collectively, the portfolio consists of 2.21 million square foot of retail and office space, worth S$3.14 billion. The Singapore side has the bulk of the assets at S$2.15 billion.

The occupancy rate for the portfolio came in at 95.5%, as of 30 June 2017. The Singapore retail portfolio achieved an occupancy rate of 99.2%.

How much money did the REIT make?

Gross revenue for FY2016/17 slipped 1.5% year-on-year to S$216.4 million while net property income came in at S$167 million, which was a 2.0% decline compared to a year ago.

The poorer performance for the year was primarily due to disruption in revenue mainly from the mall repositioning in China, asset redevelopment in Australia, weaker office performance, as well as loss of income from the divestments in Japan. However, this was slightly offset by the resilient performance of its Singapore properties and Malaysia properties.

Properties in Singapore contributed to 62.2% of gross revenue while those in Malaysia accounted for 12.6% of the revenue.

Gearing, as of 30 June 2017, was 35.3%. This is a slight decline as compared to the figure of 35% exactly a year ago.

How much did unitholders get?

Unitholders received a distribution per unit (DPU) of 4.92 cents for the whole year, a fall of 5% as compared to one year back.

The DPU translates to a yield of 6.31% based on the REIT’s closing unit price of S$0.78 cents on 30 June 2017. The yield is around 4% higher than the 10-year Singapore Government bond yield, as of 30 June 2017.

Overall, the REIT’s DPU has grown at an annualised rate of 5.4% since 2006.

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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. Motley Fool Singapore contributor Sudhan P doesn’t own shares in any companies mentioned.